Largest banks “give priority” to big customers for small business loans, lawsuits say

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Class actions allege that JPMorgan Chase and financial giants like Bank of America and Wells Fargo “put corporate greed first” by distributing tens of billions of dollars from a federal coronavirus rescue fund now vacuum for small businesses. Instead, the complaints claim that the big banks have put the big borrowers looking for larger loans from the paycheck protection program before the small businesses looking to support their tight payroll.

The lawsuits say the banks did it to maximize loan origination costs and their own profits before the PPP fund ran out. Let’s go many small businesses excluded from the program. The loans, made through the United States Small Business Administration, were said to be first-come, first-served, according to the dispute.

JPMorgan Chase, the largest US bank, lent $ 14 billion under the Paycheck program, more than any other bank. JPMorgan’s average PPP loan size was just over $ 515,300, more than double the average size of all loans made by all banks under the program, which was $ 206,000, according to data from Small Business Administration.

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